Payroll Updates

PAYROLL CURRENTLY Issue 5 is now available. The current issue, dated May 4, 2018, covers the latest federal payroll compliance developments and much more. Highlights include:

IRS Modifies HSA Contribution Limit for 2018.The IRS modified the annual limit on deductions for contributions to Health Savings Accounts (HSAs) allowed for individuals with family coverage under a high deductible health plan for 2018 by increasing it from $6,850 back to $6,900. DOL Issues Opinion Letter on Lump-Sum Payments Under CCPA.The U.S. Department of Labor's (DOL) Wage and Hour Division issued an opinion letter explaining whether certain lump-sum payments from employers to employees are earnings for garnishment purposes under the Consumer Credit Protection Act (CCPA).

DOL Creates Guidance on Tip Pooling Rules Following Legislative Changes.The U.S. Department of Labor's (DOL) Wage and Hour Division issued a field assistance bulletin to provide guidance on the tip credit provisions that were included in the Consolidated Appropriations Act, 2018. IRS Posts FAQs on Paid Family and Medical Leave.The IRS posted FAQs on the §45S credit for paid family and medical leave. Employers may take a general business tax credit equal to a minimum of 12.5% of wages paid to employees on Family and Medical Leave Act leave if the employees are paid at least 50% of their normal wages.